AbbVie Needs More to Land Shire

This has rapidly become a familiar tale: A U.S. health-care company approaches a European target with a generously pitched, strategically questionable takeover proposal that would involve flipping into a lower tax jurisdiction.

But AbbVie overlooked parts of the script. Its £46.26 (about $78) a share cash-and-stock proposal for Shire doesn't look a knockout number for the Ireland-domiciled specialty pharmaceuticals company, which has...